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General Liability Insurance for Contractors 

If you are working as a contractor in the construction industry, you will definitely require ownership of general liability insurance for you and your business. The nature of your business is high-risk, making it especially critical to have the this protection.

Owning the right general liability insurance may cover your business for financial burdens that may arise as a result of the work performed. For instance, if you are an electrician and you injure yourself while working on wires on your client’s home, general liability insurance is the right insurance that will cover costs associated with that injury.

What Is General Liability Insurance? 

General liability insurance (CGL) can also referred to as commercial insurance or liability insurance. It’s a commercial business coverage policy that the most basic insurance that a business should own.

General liability insurance is the basic type of protection a business must own. It covers any costs associated with lawsuits brought to your company along with the payout of any losses. More specifically, general liability insurance may protect your business from the following:

  • Third-party lawsuits
    • Bodily Injury (e.g. an employee or a customer is working on a customer’s home and injures themselves onsite)
    • Property Damage (e.g. one of your subcontractors is working on the eaves troughs on the side of a client’s home. They slip and grab onto the side of the house to regain their balance, falling over and ripping some of the siding off).

What Is a Contractor In The Trades and What Do They Do?

There are a wide range of contractors working in the trades who will benefit from general liability insurance.
There are a wide range of contractors working in the trades who will benefit from general liability insurance.

Construction includes both new construction builds/projects as well as the remodelling, addition, on-going maintenance and repairs to a project (all of which endorse the help of contractors and sub-contractors to get the job done). The construction sector includes a variety of types of projects:

  • Commercial (e.g. working as roofers who are renovating the top of a commercial building)
  • Industrial (e.g. handling sheet metal in a warehouse that is receiving material for a building project)
  • Residential (e.g. contracted to remove siding on a home to replace with soffia) and;
  • Engineering/architectural projects (i.e. HVAC or commercial ventilation experts updating duct passage ways in a university).

A contractor or subcontractor can be any of the following:

  • Apprentice
  • Assistant Project Manager
  • Building Inspector
  • Carpenter
  • Civil Engineer
  • Concrete Labourers
  • Construction Assistant
  • Construction Coordinator
  • Construction Engineer
  • Construction Foreman
  • Construction Manager
  • Construction Superintendent
  • Construction Supervisor
  • Construction Worker
  • Contract Administrator
  • Contract Manager
  • Crane Operator
  • Dry Wall Finisher
  • Dry wall Installer
  • Estimator
  • Electrician
  • Equipment Operator
  • Field Engineer
  • Framing Carpenter
  • General Labourer
  • Inspector
  • Iron Worker
  • Joiner
  • Labourer
  • Master Electrician
  • Master Plumber
  • Painter
  • Pipe Fitter
  • Planner
  • Plumber
  • Purchasing Coordinator
  • Project Assistant
  • Project Manager
  • Roofer
  • Safety Director
  • Safety Manager
  • Scheduler
  • Signal Worker
  • Site Manager
  • Superintendent
  • Surveyor
  • Welder

As a contractor working in the trades, you know how important owning general liability insurance is. Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

 

There are high risks are faced when working in the trades. General liability insurance is important to have if you're a contractor.
There are high risks are faced when working in the trades. General liability insurance is important to have if you’re a contractor.

Why Does A Contractor Working In The Trades Require General Liability Insurance?

You need to protect your business. If a client can sue you for damage to their property or any injury caused to the client/third party while on your construction site, the general liability insurance policy is the answer to such issues and the resulting financial strains that may arise due to resulting lawsuits. The general liability insurance policy not only covers your legal defence costs but also pays the damages owed to a client/third party. Suffice to say this is the most important policy for a contractor.

The Products and Completed Operations portion of the contractors’ insurance policy protect your business in the event your finished product causes property damage or bodily injury. For example, a few weeks after a plumbing job, the pipes leak and results in a flooded basement. The resulting damage was a result of the contractor’s “product” (i.e., services) and was something completed in the past (as opposed to on-going work). An adequate Products and Completed Operation Liability could pay damages in this case.

As a contractor working in the trades, you have many rights and responsibilities. To Get more insight on what applies to you and the area of construction that you work in, visit the Infrastructure Health & Safety Association.

In addition, many companies or clients will require you to have general liability insurance before working with you on any project. Don’t miss any opportunities!

Other Commercial Business Insurance Policies That Contractors Should Consider

  • Business Interruption Insurance 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Commercial Vehicle Insurance
  • Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. You may have tools that are stored in your truck which are stolen. It is important to note that Commercial Vehicle Insurance does not cover the damage or loss of these tools)
  • Legal expense insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).

How Much Does General Liability Insurance For Contractors Working In The Trades Cost? 

Typically, the cost of general liability insurance coverage can cost anywhere between $400-600 but can depend on the nature of your business and the level of risk it has. We encourage you to visit us online to get your free quote online for general liability insurance.

We make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. Get an estimated quote in under 5 minutes!

Don’t miss another project opportunity. Get your FREE quote online for general liability insurance. 

What Kind Of Information Do I Need To Get a Quote For General Liability Insurance as a Contractor? 

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for general liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors? If so, how many?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

 

Avoid legals fees associated with injuries to your subcontractors onsite—get general liability insurance today.
Avoid legals fees associated with injuries to your subcontractors onsite—get general liability insurance today.

Summary—What Have We Learned About General Liability Insurance for Contractors In The Trades?

  • General liability insurance (CGL) can also referred to as commercial insurance or liability insurance. It’s a commercial business coverage policy that the most basic insurance that a business should own.
  • If you are working as a contractor in the construction industry, you are going to need general liability insurance for you and your business. The nature of your business is high-risk, making it especially critical to have the this protection.
  • Considering the nature of a contracts work (working in the trades), the general liability insurance policy not only covers your legal defence costs but also pays the damages owed to a client/third party. Suffice to say this is the most important policy for a contractor.
  • In most cases (if not all), companies or clients will require you to have general liability insurance before working with you on any project. Don’t miss any opportunities!
  • Be prepared! Put together a list of questions to ask so that you don’t forget to address them, should you decide to speak to a broker about your options! We’ve put together a list of pertinent information that will likely be asked of you!
  • The cost of general liability insurance coverage for contractors working in the trades can range anywhere between $400-600 but can depend on the nature of your business and the level of risk it has. We encourage you to visit us online to get your free quote online.

Looking for general liability insurance to protect you or your team of contractors in the trades? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

List of Resources for Contractors 

Below are some valuable websites for all contractors working in the trades—it’s a good idea to bookmark them for future reference!

Associations

Statistics 

News & Insights

 


If you’re a contractor working in the trades looking for general liability insurance to protect you or your team, you can get your FREE quote online

At Zensurance, our goals is to make getting a commercial business insurance quote for your company easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. You could walk away with an estimated quote in under 5 minutes!